Singaporean insurance giant Great Eastern has been exempted from a Bank Negara Malaysia foreign ownership ruling after it pledged a minimum RM2 billion contribution to a health scheme for the Bottom 40 (B40), revealed Finance Minister Lim Guan Eng.
He said this when asked where the funds for the national health protection fund came from.
Former prime minister Najib Razak had previously claimed there was a high likelihood that the RM2 billion for an insurance scheme for the B40 came from Great Eastern, which still owned 100% of the shares it held in its Malaysian operations.
This is despite a 2017 Bank Negara ruling that foreign insurance companies in the country must release at least 30% ownership to local companies.
Lim said that forcing foreign insurance companies to reduce their equity from 100% to 70% and divest it to local institutions will only benefit a few people.
“We prefer that ordinary people benefit; we are talking about millions and millions of ringgit.
“Either way, it goes to Malaysians but this way the B40 will get the benefit. The other way, very few will benefit, not even 40,” he told a press conference today.
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